On January 23, 2013, Western Digital Corporation (the "Company") communicated to U.S.-based employees of its WD subsidiary that it was instituting a voluntary separation program (the "Program") intended to help realign its cost structure with a softer demand environment. Employees who apply for and are accepted in the Program will receive enhanced separation benefits based on job level and, in some cases, length of service. Executive officers of the Company are not eligible for the Program.

The Company currently does not know the number or job levels of employees that will participate in the Program. Therefore, at this time the Company is unable to estimate the charges it will incur in connection with the Program, although it expects charges will consist of cash severance and other one-time termination benefits. The Company expects to complete the Program by the first quarter of fiscal 2014 and will provide an estimate of the amount or range of charges expected to be incurred when a good faith determination can be made.